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The competition was founded in the 1975–76 season, with Al-Nassr as the first champion. Initially, it was for senior teams, but the rules were later changed to allow only players under 23 years of age. However, after a few years and a lack of spectator interest, the competition was reopened to players of all ages.
In 2000, the name of the competition was changed from saudi federation Cup to its current title, a decision made to commemorate the late Prince Faisal bin Fahd.
The 2009-10 edition was the final tournament for first teams. It was then changed to an Under-21 competition, counting for youth teams rather than the first team. Al-Hilal is the record holder in this competition with the most championships.